CONSUMER PRICE INDEX FOR HOUSTON-GALVESTON-BRAZORIA: APRIL 2009

Area Price Rise Led by Higher Clothing Costs

Prices in the Houston-Galveston-Brazoria metropolitan area rose 0.9 percent during

March and April, the Bureau of Labor Statistics of the U.S. Department of Labor reported today.

Regional Commissioner Stanley W. Suchman noted that higher clothing prices were the largest

single factor in the two-month advance, although several other categories were also major

contributors. During the year ended in April 2009, total prices rose just 0.5 percent – primarily

due to a sharp decline in gasoline costs. These data are based on the Consumer Price Index for

All Urban Consumers (CPI-U).

Apparel prices increased 8.9 percent in March and April, the sharpest two-month increase

since January and February 2005. Large gains often occur at this time of year as new spring and

summer lines are introduced; the latest two-month movement compared to a 5.6-percent increase

March and April 2007. During the current period, higher prices were noted for a variety of

clothing items including women’s sportswear, women’s footwear, and men’s shirts and sweaters.

Despite the magnitude of the recent increase, the cost of apparel fell 3.8 percent over the year.

The index for other goods and services climbed 4.3 percent in March and April, the

sharpest rise since the two months ended in February 2007. The current increase was largely the

result of sharply higher prices for cigarettes and tobacco products. During the last 12 months,

the cost of other goods and services advanced 5.7 percent, due primarily to higher tobacco costs.

The transportation index rose 1.0 percent in March and April following a 3.6-percent rise

in the first two months of the year. Higher gasoline prices accounted for nearly all of the

increase as they registered a 9.8-percent hike during the two-month period. The average price

for a gallon of gasoline in the Houston area stood at $2.073 in April. Charges for car and truck

rentals also rose during the bimonthly period while declines were noted for new car prices. Over

the year, total transportation costs fell 15.4 percent mainly as a result of a 39.3-percent annual

drop in gasoline prices.

While the housing index rose a relatively modest 0.4 percent during March and April, it

was another major contributor to the overall CPI rise. The increase was primarily due to higher

costs for shelter as owners’ equivalent rent (homeowners’ costs) increased 1.1 percent and rent

of a primary residence (renters’ costs) rose 0.6 percent. Prices for household furnishings and

operations also advanced, up 0.4 percent. In contrast, the index for household energy fell 0.5

percent during the two-month period reflective of a 0.6-percent decrease in electricity charges

and no change in natural gas service costs. On an annual basis, electricity prices were up 20.5

percent while natural gas costs rose 1.0 percent. Combined with a 7.2-percent yearly price rise

for household furnishings and operations as well as a 5.4-percent increase in shelter costs, the

housing index rose 7.0 percent over the year.

Read the full article: http://www.bls.gov/ro6/fax/cpi_hou.pdf